Tycoon’s prime Ho Chi Minh City real estate up for sale in fraud recovery

[HO CHI MINH CITY] Some of Ho Chi Minh City’s most exclusive real estate is being put up for sale as the Vietnamese bank involved in the Truong My Lan fraud scandal prepares to auction properties tied to the tycoon in a bid to recover billions of dollars.

Saigon Commercial Bank is seeking to appoint an independent valuation firm to arrange for the sale of 13 assets tied to Lan, according to a statement on the bank’s website.

The bidding period runs until Jul 30 and will take place under the supervision of the Supreme People’s Procuracy, Ministry of Public Security and other authorities to ensure transparency, the statement said.

The properties include prime plots on some of the commercial hub’s most sought-after streets such as Ngo Duc Ke, Ho Huan Nghiep and Le Loi, which are surrounded by landmark developments and iconic buildings such as the Bitexco Financial Tower, Ben Thanh market and Times Square tower.

Office buildings on Pasteur street in the central business district are being prepared for auction, as well as three other properties in the southern province of Tay Ninh – a warehouse, a factory and a land plot – together with machinery.

Lan, 69, was once one of Vietnam’s most prominent property developers. She was sentenced to death in April 2024 after being found guilty of embezzling US$12.3 billion from Saigon Commercial Bank.

Vietnam later abolished the death penalty for certain economic crimes, including those Lan was put on death row for.

She was also convicted on charges of money laundering and other crimes in a second trial. Lan has so far repaid a total of around 12 trillion dong (US$457 million) to some 43,000 bondholders. She still owes them about 18 trillion dong. 

The recovery process has so far proven challenging. SCB has failed three times to find a consulting firm to advise on the sale of Lan’s assets, while attempts to auction her luxury motor yacht and two smaller boats ended without buyers in five consecutive auctions.

SEE ALSO

Vietnam bank to sell mogul’s property, car to offset fraud loss

Still, authorities have successfully sold other seized assets, including luxury Hermes handbags, a Maybach and BMW car.

The proceeds from sales of the assets will go toward recovering the multibillion dollar losses incurred, after courts ordered her to repay US$27 billion in damages. BLOOMBERG